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What’s stopping your property from going up in value?

We all know that demand can drive property prices upwards, but many investors are overlooking the factor that can keep values stagnant, or even push them down.

On 23 June 2014, our Managing Director, Damian Collins, was invited to speak on this topic on Smart Property Investment magazine’s ‘Inside Word’.

Hear what he had to say in the video above and transcript below.

 

“Supply and demand are absolutely crucial when you’re buying an investment property, and too many people focus on the demand side and forget about the supply.

So often you find property marketers will tell you to particularly go to locations, such as the Gold Coast for example. They’ll say, ‘Well, this has a great demand and lots of people moving here. It’s the fastest growing city,’ and so on and so on. But what they forget to mention is the supply component of it. And if there is lots of land available for lease, and if you’re buying an apartment in an area where there’s lots of potential supply, for example in Melbourne at the moment – in 2014, Southbank and Docklands have a lot of supply coming into the market.

So even if that demand’s really good, the supply can really inhibit price growth. So I’m very much of the opinion that when buying property, and what we do at Momentum Wealth, is look for those demand factors, but if there’s potentially a lot of supply, it just rules it out as being a good investment area.”

 

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